Rental demand for new condos declining
Overall rents in Singapore are down in past two years; vacancy rates hit 10-year peak at end of last year. New condominiums used to enjoy pretty firm rental demand but those days have gone. At the 862-unit Eight Riversuites in Whampoa East, one of the larger condominiums being completed this year, interest is weaker than in the past. Urban Redevelopment Authority (URA) flash estimates for the first quarter are expected to show that rents have continued to slide. Savills Singapore research head reckons they could have fallen about 1.5 per cent in the first quarter from last year and may be down about 6 per cent this year. Rental decline has already gathered pace, with rents falling 3 per cent in 2014 and 4.6 per cent last year. About 32,732 private homes are expected to be completed this year and in 2017, about 10 per cent of current stock.